State sheds 5,200 jobs in September; unemployment rate falls to 5.4

Updated 2:32 pm, Thursday, October 20, 2016

FILE - This Thursday, Sept. 29, 2016, file photo, shows the Illinois Department of Employment Security office in Springfield, Ill. On Thursday, Oct. 20, 2016, the Labor Department reports on the number of people who applied for unemployment benefits the week before. (AP Photo/Seth Perlman, File) less

FILE - This Thursday, Sept. 29, 2016, file photo, shows the Illinois Department of Employment Security office in Springfield, Ill. On Thursday, Oct. 20, 2016, the Labor Department reports on the number of ... more

Photo: Seth Perlman / Associated Press

State sheds 5,200 jobs in September; unemployment rate falls to 5.4

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WETHERSFIELD - Connecticut lost 5,200 jobs in September, the third straight month of negative job growth, according to a report released Thursday by the Connecticut Department of Labor.The state has added a total of 5,000 jobs since the beginning of the year, but September’s big loss follows smaller declines reported in July and August. The state lost 1,700 jobs in July and August’s initial report of 300 jobs gained has been revised to a loss of 300 jobs.

“You always have to put these huge fluctuations in perspective, but that being said, these numbers are a huge disappointment,” Peter Gioia, vice president and economist for the Connecticut Business and Industry Association, said. “Not just the monthly numbers are disappointing, but three losses in a row.”

The state’s unemployment rate declined two tenths of a point to 5.4 percent. The unemployment rate was 5.3 percent last September. The U.S. unemployment rate is 5.0 percent.

“Connecticut saw job losses in September for the third month in a row and our three-month average of total nonfarm jobs saw its first decline this year,” Andy Condon, director of the Office of Research, said. “However, market signs are mixed as the state’s unemployment rate continues to fall.”

There are now 1,685,000 workers in Connecticut. The employment numbers are based on the results of a survey administered by the U.S. Bureau of Labor Statistics.

Many of the September job losses came from the government sector, which shed 2,500 jobs. State DOL officials said government layoffs and retirements are starting to show up in the labor numbers. The private sector also lost 2,700 jobs in September.

Connecticut has recovered 90,800 of the 119,100 positions lost during the recession. The state needs to reach the 1,713,300 job mark to recover all of its losses. It is currently about 28,300 jobs short.

“We’re back-pedaling on our recovery. At this rate it will be 2018 by the time we are fully recovered,” Gioia said. “I think Connecticut has tremendous economic potential, but this report shows we are clearly not reaching that. Massachusetts, right next door, has recovered more than 300 percent of its jobs lost during the recession. For every job they lost they have added three more. That’s a depressing comparison.”

The decline in the unemployment rate, Gioia said, is likely due to people dropping out of the workforce.

“In light of the other numbers in this report, the unemployment rate reduction is nothing to celebrate,” he said.

Of the 10 major industries tracked by the survey, only trade, transportation and utilities added jobs in September.

Of the four Connecticut Labor Market Areas, Bridgeport-Stamford-Norwalk saw the largest decline in September by shedding 1,200 jobs. It remains, however, the strongest area in annual growth.